A Stakeholder pension is the name given to a tax-efficient savings scheme, introduced by the Government on 6th April 2001, but is still a personal pension and is subject to the same rules.

Under the rules that the Government brought out in 2001, every UK employer with five or more employees, who did not offer an Approved Occupational Pension or certain Group Personal Pensions, had to offer access to a Stakeholder Pension scheme by 8th October 2001. 

If your employer has more than five employees, and you are not currently contributing to a pension scheme, we would suggest that you contact your employer for details of the company scheme. If there is no scheme, please contact us.

The Stakeholder pension is designed to be `open’ to everyone, and is a low cost, transparent investment vehicle. Typically the only charge made on the contract is a 1% annual management charge, while giving you full access to the pension company’s full range of funds (there maybe an additionally charge if specialist external funds are used).

It is a portable pension that can be kept running irrespective of your occupation or employer.

Since 6/4/2006, all occupational scheme members may now have a personal pension as well, regardless of earnings.

Typically any other people may access stakeholder pensions, including minor children, and unemployed people below the age of 75.

All of the above will receive basic rate tax relief (regardless of their actual tax position or earnings) on their contributions to a minimum of £2,808 per annum net (grossed up to £3,600 p.a.) and a maximum of earned income in that year, or £225,000 (see A-Day Actions).

For more detail on the suitability of a Stakeholder pension for you, please contact me.